A union representative told 2 on your side employees were notified in small groups about the changes.

The New Era Cap Company sent us a statement that says quote:

"In an effort to balance our production efforts with demand for our product at the Derby Facility, the staff was notified today of a 25 percent reduction in the workforce set for later this year."

The company indicates that the layoffs are permanent, but that discussions will continue with the union as things develop.

"It's going to have a huge economic impact in the area -- especially for a town that's trying to make a comeback as far as the economy is concerned," Supervisor Keith Dash said. " It's mostly going to affect people in the town of Evans."

Keep in mind this isn't the first there's been trouble at the company.

Three years ago the fate of the local plant had been in doubt while management was deciding to stop operations either here in western New York or at another facility in Alabama.

The company decided to keep the Derby plant open.

2 on your side is told over 300 employees work here and that severance packages are being offered to employees laid off.

The union rep tell us the layoffs are partially due to not as many baseball hats selling, therefore the demand for manufacturing them is down.

"There are no words that can bring comfort when you lose any means of income and our thoughts and prayers go out to them," Dash said. "We hope the union as well as the company will make available transfers or other jobs throughout the organization -- not in the town of Evans, so at least these people can sustain themselves."